42 C
Thursday, July 25, 2024

Dubai’s July business growth decelerates from June peak – S&P Global

Dubai’s businesses demonstrated continued strength in July, fueled by new contracts and increased output, with restrained costs for raw materials and supplies further reinforcing growth prospects for the year ahead.However, July’s performance slightly lagged behind the 10-month high seen in June.

The key sectors – construction, wholesale and retail, and travel and tourism – witnessed slower growth in new business compared to June, according to the latest PMI data from S&P Global.

Consequently, companies also exhibited a reduction in hiring activity.

Nonetheless, the overall sentiment remains optimistic. David Owen, Senior Economist at S&P Global Market Intelligence, noted that the surge in output was driven by new orders, successful marketing, and project wins.

He highlighted that a substantial portion of businesses experienced monthly expansion, and firms were displaying increased confidence about the future. The report also indicated improving supply conditions and stable price pressures.

The July Purchasing Managers Index (PMI) reached 55.7, down from June’s 10-month high of 56.9. This figure still indicated a robust upswing in non-oil economy conditions.

The PMI is based on output, employment generation, and CEO/owner sentiments, with any reading above 50 suggesting business activity expansion.

Despite the cooling demand growth observed after the June high, key sectors reported a slightly weaker rise in new business, leading to a modest moderation in job creation.

Next Article

Related Articles

Dubai Innovative ‘Silent Radars’ to Enhance Safety in Residential Areas

Dubai is stepping up its traffic enforcement measures with the introduction of new 'silent radars' designed to catch traffic violations in residential areas. This innovative...

Green Future: Dubai’s New Eco-Tourism Project Receives Sheikh Hamdan’s Approval

Green Future: Dubai has taken a significant step towards bolstering its commitment Sustainability and environmental conservation with the approval of a new eco-tourism project by...

UAE Summer: Residents Face Challenges with Rising Humidity.

UAE residents are grappling with the effects of extreme heat and rising humidity. As summer reaches its peak in the United Arab Emirates (UAE),  Reports...

Explore the GCC’s Newest AI Innovation for Transforming Your Social Media Strategy!

Ardalan Zadehsoltan, founder and CEO of Unlock AI, launched the company to address social media management challenges faced by clients. With a background in...

Ginco Properties Launches One Residence, Steps from 1 Burj Khalifa in Downtown Dubai

Ginco Properties Launches One Residence, Steps from Burj Khalifa in Downtown Dubai Dubai, UAE - 17 July 2024 — Ginco Properties, the developer behind successful...

Latest Articles